Krievu island project to be funded by two banks

The open tender announced by the Freeport of Riga Authority for 77 million euro financing for the project ‘Development of Infrastructure on Krievu Island for the Transfer of Port Activities from the City Centre’ has ended. OP Corporate Bank and AS SEB Banka, which offered the best loan conditions, were announced the winners.

In 2013, an 80.2 million euro loan was disbursed by Nordea AB and OP Corporate Bank for the most ambitious infrastructure project in the port’s history, which is being implemented with the co-funding from the EU Cohesion Fund. The conditions of the loan included refinancing of the loan in five years, and at the beginning of this year the Freeport of Riga Authority announced a new open tender to obtain the funding.

The participation of Latvia’s leading banks in the Krievu Island Project as financial partners continues to prove successful progress and transparency of the project. Representatives of the two banks appreciated the opportunity to participate in the ambitious project: “SEB is one of the leading banks in the corporate segment in Latvia and has extensive experience in financing investment projects of various scale. We are happy to have this opportunity to contribute to the improvement of the infrastructure of the Freeport of Riga strengthening its competitiveness in this region”, Ints Krasts, SEB Banka Member of the Board, said.

Elmārs Prikšāns, Manager of the Latvian branch of OP Corporate Bank, Finland’s leading financial service provider, noted: “OP Bank is the fastest-growing financial partner for Latvian companies in their growth and sustainable development. We appreciate that by continuing our long-term successful cooperation with the Freeport of Riga Authority, together we will support the development of the port infrastructure. The port, same as railway and roads, is a crucial part of the country’s economic blood flow. We are confident that this deal will help the Port of Riga become the leading port in the Baltic States and support its contribution to the growth of national economy of Latvia”.

The Freeport of Riga Authority wishes to thank all the financial institutions participating in the Krievu Island Project, which is crucial for the Port of Riga, as well as for any successful cooperation in the past and commitment to any future cooperation. “Despite the complicated situation in the banking sector this spring, which coincided with the financing tender announcement by the Freeport of Riga Authority, we have secured the needed refinancing. We have successfully raised the funds by negotiating good loan conditions with the banks, thus ensuring financially stable and transparent work in future”, Ansis Zeltiņš, CEO of the Freeport of Riga Authority, concluded.

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